Daily Archives: December 5, 2007

First there were rumors of Cisco layoffs, and now we’re hearing that Avaya, purveyor of VoIP systems for enterprise customers, might be shedding staff, or about to announce cuts, just before the festive season. Ho, bloody ho!If true, these reports would indicate that enterprise buyers, particularly in the financial-services and retail markets, are slashing IT budgets and sharing their pain with vendors of IT products and services. These reports, if confirmed, also could be portents of revenue and earnings shortfalls this quarter and next for a number of technology bellwethers.

About three years ago, Microsoft explored the possibility of acquiring SAP. The discussions eventually wound down, with the companies deciding to pursue separate paths. It was the right choice for both companies and their shareholders then, and it would be the right choice today. Culturally, the SAP and Microsoft corporately milieus are starkly different. It would have been a difficult combination, ugly to integrate and on a scale for beyond any merger Microsoft has done.